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Title: |
Coase and the Reform of Securities Markets |
| Author: |
Johnson, Simon |
| Author
Affiliation: |
MIT |
| Source: |
International Economic Journal, Spring 2002, v. 16, no. 1, pp. 1-19 |
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Publication Date: |
Spring 2002 |
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Abstract: |
A growing body of evidence indicates that
legal rules matter for corporate governance around the world. Countries
with stronger investor protection have more developed capital markets,
and find it easier to finance economic development. Weak corporate
governance also appears to make companies and countries vulnerable to
large collapses. The origin of these institutions lies with the history
of competing political systems within Europe and colonization outside of
Europe. Despite the importance of long-standing historical influences,
effective legal reform has proved possible in some cases. The most
successful reforms to date are those that implement US standards of
disclosure. |
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